Vietnam's remarkable ascent in the global market has marked it as a burgeoning hub for international trade, especially noted in the first ten months of 2024. During this period, the nation recorded a trade turnover of approximately US$647.87 billion, an impressive 16% increase from the previous year, according to the Vietnam Briefing1. Of this, exports alone contributed nearly US$335.59 billion, evidencing a 15% rise year-on-year, highlighting the robustness of Vietnam’s export sector.
As 2025 unfolds, forecasts suggest that Vietnam will maintain this momentum, with expectations set for an export turnover exceeding US$405 billion2, signaling continued economic growth driven by export activities.
According to the Vietnam National Trade Repository, the backbone of this growth stems from key industries such as textiles, agriculture, and processed goods.
The textile sector, for instance, is targeting an ambitious export turnover between US$48 to US$49 billion for 2025, aiming to surpass the previous year's figures by US$4 to US$5 billion3.
Similarly, the agricultural sector, including forestry and fisheries, has seen significant increases, with a turnover reaching US$32.2 billion in 2024, accounting for 9.6% of total exports4. Notably, Vietnam's fruit and vegetable exports surged to US$6.4 billion from January to October of 20245, underscoring the country’s growing reputation as a major exporter of fresh produce.
In the context of such expansive trade activities, the importance of risk management becomes paramount for small businesses venturing into cross-border trade.
This is because the complexity and unpredictability of international logistics can expose these enterprises to various risks, including the loss, damage, or delay of goods. Such incidents not only result in direct financial losses but can also erode customer trust and damage long-term brand credibility.
In light of these challenges, adopting comprehensive shipping insurance emerges as a crucial strategy for small businesses. This not only safeguards their financial interests but also bolsters reliability, ensuring that both the business owners and their customers are protected against the vicissitudes of shipping on a global scale.
The hidden dangers of international shipping
Engaging in international shipping inevitably exposes businesses to a range of risks that can significantly disrupt their business operations. As mentioned, loss, damage, theft, and delays are common challenges that can occur during the transit of goods across borders. For small businesses, these risks are not just potential inconveniences but could lead to severe financial and operational setbacks.
For instance, a notable case occurred in 2023 when police in Ho Chi Minh City investigated the theft of 2,417 pairs of Dr. Martens shoes, valued at approximately US$64,176, which were destined for South Korea6. Such incidents highlight the vulnerability of goods during shipment and underscore the critical need for protective measures like shipping insurance.
Moreover, the rise in international trade fraud has been a growing concern, according to Vietnam News. In fact, Vietnamese trade offices have reported an increase in the sophistication of scams targeting local businesses, with some companies losing substantial sums ranging from tens of thousands to millions of US dollars7.
This trend emphasizes the importance of comprehensive insurance coverage that not only offers financial compensation but also provides a safety net, allowing businesses to recover and continue operations with minimal disruption.
Understanding shipping insurance protection: Coverage and benefits
Shipping insurance, typically provided by postal, courier, and logistics companies, covers losses incurred while goods are in transit. The coverage ensures that in the event of loss, theft, or damage, the financial liability shifts from the exporter to the carrier, safeguarding the business’s assets and investment.
For small enterprises, particularly those reliant on international markets, the assurance that such insurance provides can be invaluable as it allows them to replace lost or damaged goods without bearing the full financial burden, thus maintaining business continuity.
The various types of coverage available for businesses engaged in international shipping include:
- All-risk cover: Provides comprehensive protection against all risks, including physical damage or loss, unless specifically excluded in the policy.
- Named-perils cover: Protects against specific dangers listed in the policy, such as fire, collision, or water damage.
- Cargo insurance: Protects goods against loss or damage during shipping by air, sea, or land.
Types of losses typically covered:
- Damage to goods during transit
- Theft of goods
- Shipping delays
- Lost or misplaced goods
The coverage is usually proportional to the declared value of the shipment, ensuring businesses can recover the full value in case of a claim. It’s important to note, however, that not all scenarios are covered.
Exclusions typically include:
- Damage caused by the contents of the shipment, such as leakage
- Loss due to inadequate packing
- Wilful misconduct by the shipper
Why shipping insurance is essential for small businesses
So, why is shipping insurance protection not just beneficial but essential for mitigating the inherent risks of global trade?
Some of the key reasons why shipping insurance is indispensable for small enterprises:
- Financial protection: Insurance safeguards against financial loss by covering the cost of goods that are lost or damaged in transit, ensuring businesses are not burdened by unforeseen expenses.
- Peace of mind: With the security that insurance provides, business owners can concentrate on growing their businesses rather than worrying about the safety of their shipments.
- Enhanced business credibility: Offering insured shipments elevates a business’s reputation, demonstrating a commitment to customer service and reliability.
- Competitive advantage: In a global market, the ability to assure customers that their goods are insured can set a company apart, potentially boosting sales and customer retention.
- Risk mitigation and legal protection: Insurance also helps manage legal risks associated with the transportation of goods. Should a dispute arise from lost or damaged shipments, having insurance means having the backing of experts to handle claims and legal matters.
Together, these benefits contribute not only to operational security but also to the strategic positioning of small businesses in the competitive arena of international trade.
Maximizing your shipping insurance: Tips and best practices
To ensure that your small business fully capitalizes on the benefits of shipping insurance, particularly when navigating the complexities of international markets, consider these strategic guidelines:
- Accurate valuation: It's crucial to declare the correct value of your shipments. This value should reflect the cost of goods, shipping fees, and any potential profits. Accurate valuation prevents underinsurance, which can lead to insufficient compensation, and overinsurance, which increases premium costs unnecessarily.
- Understand your policy: Familiarize yourself with every detail of your insurance policy. Know what risks are covered, the exclusions, limitations, and the specifics of the claims process.
- Maintain proper documentation: Keeping a thorough record of all shipping documents is vital. These documents, including commercial invoices, packing lists, and bills of lading, are essential when it comes time to file a claim.
- Regular policy review: The needs of your business will evolve as it grows. Regularly reviewing your insurance coverage ensures it remains aligned with your current operations and trade volumes. Adjustments may be necessary as you expand into new markets or as your product offerings change.
DHL Express: Your partner in secure shipping
From the above, it is clear that choosing comprehensive shipping insurance is more than just a cost—it's a strategic investment in the stability and growth of your business. This proactive approach not only shields your operations from potential disruptions but also strengthens customer confidence in your reliability as a vendor.
DHL Express offers bespoke shipping insurance solutions designed to meet the needs of small businesses shipping from Vietnam. With Shipment Protection plans that encompass extensive coverage, mitigating risks like loss, damage, theft, and delays, you can ensure that your valuable shipments are well-protected throughout their journey.
Benefits of DHL Express shipping insurance
DHL Express shipping insurance offers key benefits, including:
- Peace of mind: Gain confidence knowing that your shipments are comprehensively insured against unexpected incidents.
- Streamlined claims process: Enjoy quick and efficient handling of claims, minimizing disruption to your business operations.
- Competitive rates: Benefit from affordable coverage options that do not compromise on security.
- Easy management: Utilize the user-friendly MyDHL+ platform for straightforward tracking and management of your shipping insurance.
- Enhanced business convenience: We encourage small business owners in Vietnam to establish a business account with DHL Express to unlock additional benefits and streamline their logistics needs.
With DHL Express Vietnam, secure not just your parcels and shipments but also your peace of mind. Open a business account today and experience the reassurance of having a dependable logistics ally by your side.
